|Personal Allowance (PA)*||£11,850||£11,500|
|Rent a room relief**||£7,500||£7,500|
|Dividend Allowance (DA)||£2,000||£5,000|
10% of the PA (2018/19: £1,185; 2017/18: £1,150) can be transferred to a spouse or civil partner who is no more than a basic rate taxpayer.
*PA will be withdrawn at £1 for every £2 by which ‘adjusted income’ exceeds £100,000. There will therefore be no allowance given if adjusted income is £123,700 or more (2017/18: £123,000).
** If gross income exceeds it, the limit may be deducted instead of actual expenses.
|Basic Rate Band (BRB)||£34,500||£33,500|
|Higher Rate Band (HRB)||£34,501 – £150,000||£33,501 – £150,000|
|Additional rate||over £150,000||over £150,000|
|Personal Savings Allowance (PSA)
– Basic rate taxpayer
– Higher rate taxpayer
BRB and additional rate threshold are increased by personal pension contributions (up to permitted limit) and Gift Aid donations.
|Tax Rates 18/19 & 17/18||General||Savings||Dividends|
General income (salary, pensions, business profits, rent) usually uses personal allowance, basic rate and higher rate bands before savings income (interest).
To the extent that savings income falls in the first £5,000 of the basic rate band, it is taxed at nil rather than 20%.
The PSA taxes interest at nil, where it would otherwise be taxable at 20% or 40%. Dividends are normally taxed as the ‘top slice’ of income. The DA taxes the first £2,000 (2017/18: £5,000) of dividend income at nil, rather than the rate that would otherwise apply.
You pay Scottish Income Tax if you live in Scotland. It’s paid to the Scottish Government. Please speak to us about the applicate rates and bands.
Child Benefit Charge
1% of child benefit for each £100 of adjusted net income between £50,000 and £60,000
|Lifetime Allowance (LA)||£1,030,000||£1,000,000|
|Annual Allowance (AA) *||£40,000||£40,000|
Annual relivable pension inputs are the higher of earnings (capped at AA) or £3,600.
*The AA is usually reduced by £1 for every £2 by which relevant income exceeds £150,000, down to a minimum AA of £10,000. The AA can be reduced to £4,000, where certain pension drawings have been made.
National Minimum Wage
|Rates per hour||From 01.04.18||From 01.04.17|
|Aged 25 and over||£7.83||£7.50|
|Aged 21 – 24||£7.38||£7.05|
|Aged 18 – 20||£5.90||£5.60|
National Insurance Contributions
|Class 1 (Employees)||Employee||Employer|
|Main NIC rate||12%||13.8%|
|No NIC on first||£162pw||£162pw|
|Main rate* charged up to||£892pw||no limit|
|2% rate on earnings above||£892pw||N/A|
|Employment allowance per business**||N/A||£3,000|
*Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £892pw.
**Some businesses do not qualify, including certain sole director companies. Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).
|Class 2 (Self-employed)|
|Flat rate per week||£2.95|
|Small profits threshold||£6,205|
|Class 3 (Voluntary)|
|Flat rate per week||£14.65|
|Class 4 (Self-employed)|
|On profits £8,424 – £46,350||9%|
|On profits over £46,350||2%|
Tax Free mileage allowances
|Employee’s own transport||per business mile|
|Cars first 10,000 miles||45p|
|Cars over 10,000 miles||25p|
Annual investment limits
|Individual Savings Account (ISA)
– Overall limit
– Lifetime ISA
|EIS – 30% relief*||£2,000,000||£1,000,000|
|EIS eligible for CGT deferral relief||Unlimited||Unlimited|
|Seed EIS (SEIS) – 50% relief||£100,000||£100,000|
|SEIS – 50% exemption for reinvested gains||£100,000||£100,000|
|Venture Capital Trust (VCT) – 30% relief||£200,000||£200,000|
*For 2018/19, amount over £1m must be invested in ‘knowledge-intensive’ companies.
Capital Gains Tax
|Individuals & estates||£11,700||£11,300|
|Tax Rate 2018/19 & 2017/18||Rate|
|Individual (to basic rate limit)*||10%|
|Individual (above basic rate limit)*||20%|
|Entrepreneurs’ Relief (ER)**||10%|
*Individuals are taxed at 18%/28% on gains on residential property and receipts of carried interest. Trusts are taxed at 28% in these circumstances.
**ER is available for lifetime gains of up to £10m. Qualifying disposals include a trading business and shares in a trading company (from a minimum 5% holding) by an officer/employee. Various conditions apply.
Corporation tax rate is 19% for the year to 31.03.2019 and 31.03.2018
|Research and development relief||From 01.01.2018||From 01.04.2015 to 31.12.2017|
|SME enhanced expenditure
|Large company R&D Expenditure
Credit (RDEC) scheme**
*Additional deduction for qualifying R&D.
**Taxable expenditure credit for qualifying R&D. SMEs that make losses can surrender the deduction to HMRC in exchange for a payment of 14.5% of the loss.
Main capital allowances
|Plant and machinery|
|100% Annual Investment Allowance (AIA)||£200,000|
|energy and water-efficient equipment||100%|
|writing down allowance: general pool (reducing balance)||18%|
|writing down allowance: special rate pool (reducing balance)||8%|
The special rate pool includes long life assets, integral plant in buildings, thermal insulation.
|From 01.04.15 to 31.03.18
|New cars only||up to 50||up to 75||100%|
|In general pool||up to 110||up to 130||18% pa|
|In special rate pool||above 110||above 130||8% pa|
|Registration level from 1.4.2018||£85,000 per annum|
|Deregistration level from 1.4.2018||£83,000 per annum|
Many of the rates and allowances shown above are subject to a range of exceptions and special rules that apply in different circumstances. The details set out above should be taken only as a general guide.